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What's new for dealers and auctions

CARS - Car Allowance Rebate System "Cash for Clunkers"

Frequently asked questions (FAQs) dealer information

Customer information regarding The Car Allowance Rebate System (CARS) - a new program administered by the National Highway Traffic Safety Administration (NHTSA) as part of the Consumer Assistance To Recycle and Save Act of 2009 recently signed into law by President Obama. Also known as "Cash for Clunkers," the program offers cash assistance to consumers of either $3,500 or $4,500 toward the purchase or lease of a new, more fuel-efficient car, van, sport utility or pick-up truck when trading in an old, less fuel-efficient vehicle. Vehicles purchased on or after July 1, 2009 may be eligible for credit from a participating dealer.

Wisconsin dealers required to process electronically

A law passed in July 2005 requires that all licensed motor vehicle dealers electronically process title and registration applications for their customers by June 30, 2007.

If a dealership sold 48 or fewer vehicles in 2006, it may be exempt from the electronic processing requirement. If the dealership is exempt and chooses not to electronically process, it must pay an additional $15 per application.

If a dealership is not exempt it will be assessed a $50 surcharge for each application submitted to DMV for processing that can be completed electronically. This surcharge cannot be passed on to the customer.

It is to your dealership's advantage to learn an electronic system.  Wisconsin DMV is pleased to offer three choices for electronic titling:

• CVR: Marla Frazier, (847) 420-9341
• TriVIN: Kim Winskell, (800) 876-2312, ext. 4242
• e-MV11: www.dot.wisconsin.gov/business/dealers/emv11
  WisDOT Customer Service Unit, (608) 266-1425

e-MV11

WisDOT's e-MV11 program now allows motor vehicle dealers to electronically process all title/registration applications for their customers via the Internet.

There are numerous benefits in filing electronically. To name a few, there is no charge and the program allows dealers to meet the requirements of the Wisconsin budget bill that requires all licensed motor vehicle dealers to electronically process all title/registration applications for their customers via the Internet.

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Dealer publications already available electronically:

The following documents are in Adobe PDF format.

• Directory of Wisconsin Dealers WisDOT list of all licensed motor vehicle businesses in Wisconsin.
• List of dealers including vehicle makes they can sell (293 KB)
• Non-valid Wisconsin BID card directory WisDOT list of all Salvage Buyer Identification Cards that become non-valid before the expiration date shown on the card.
• Out-of-business dealer directory WisDOT list of all dealerships that went out of business prior to the license expiration date shown on their license certificate.
• Plain Dealing newsletter Current and back issues of WisDOT’s Plain Dealing newsletter.

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Cashable voucher program revisited

The Spring/Summer, 2003, edition of WisDOT's Plain Dealing newsletter discussed WisDOT and Department of Financial Institutions (DFI) concerns regarding a marketing program called the “Cashable Voucher Program,” which some Wisconsin dealers had begun to advertise. At that time, DFI believed the program may have violated securities laws and WisDOT believed it constituted misleading advertising.

The Department of Financial Institutions, has now determined that the cashable vouchers, as currently marketed, do not violate securities laws, because they do not create “indebtedness” and are not a security requiring registration under the Wisconsin Uniform Securities law.

WisDOT spoke with a handful of dealers who currently use the cashable voucher program, in an attempt to improve disclosures and bring the program into compliance with Wisconsin law. Despite those efforts, and after additional discussion with Wisconsin regulatory agencies and other states, WisDOT maintains its position that the program constitutes misleading advertising under Trans 139.03. There is also growing consensus among state agencies that the program may violate other laws as well. The program is still under investigation.

WisDOT strongly discourages Wisconsin dealers from using the cashable voucher program. For more information, contact Nancy Passehl at (608) 264-9538 or nancy.passehl@dot.state.wi.us.

If you have any questions regarding these changes:

• E-mail: dealers.dmv@dot.state.wi.us
• Call: (608) 266-1425
• FAX: (608) 267-0323
• Write to the address below:

Previous items:

See the Spring/Summer 2003, edition of WisDOT's Plain Dealing newsletter for information about these topics:

• Cashable voucher program
• Sunday vehicle displays
• Walk-in dealer licensing eliminated
• MV11 form changes coming
• Privacy for prior owner
• Unauthorized buyers at virtual auctions
• Bond requirement for wholesalers and bond increase for dealers

Other issues of Plain Dealing newsletter are available for viewing online.

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You will need the Adobe Reader (provided free of charge) to view PDF files. For more information about getting your free copy of the Adobe Reader, visit WisDOT's Software information page.

Questions about the content of this page:
Division of Motor Vehicles, Dealer Section, dealers.dmv@dot.state.wi.us
Last modified: July 29, 2009